10 Scudi – San Marino

In 1978, San Marino's currency situation was intrinsically linked to that of Italy, operating under a formal monetary convention that had been renewed and updated over decades. The Republic used the Italian Lira as its official legal tender, while also issuing its own distinct Sammarinese Lira coins at par with the Italian currency. These special coins, minted in limited quantities and featuring national symbols, were primarily intended for collectors and ceremonial purposes rather than everyday circulation, as Italian banknotes and coins dominated commercial transactions. This arrangement provided San Marino with monetary stability and seamless economic integration with its much larger neighbor, which entirely surrounded it.

The year fell within a turbulent period for the Italian Lira, which directly impacted San Marino. Italy was experiencing high inflation and significant political instability in the late 1970s, leading to frequent devaluations within the European "Snake" exchange rate mechanism. Consequently, the Sammarinese Lira, being pegged at 1:1, mirrored this weakness on the international stage. This passive dependence meant San Marino had no independent monetary policy to counteract the inflationary pressures or currency depreciation imported from Italy, a key vulnerability of the arrangement.

Despite these external pressures, the 1978 system functioned smoothly in practice due to the deep economic and banking integration between the two countries. Italian banknotes circulated freely, and Sammarinese banks operated within the Italian financial system. The bilateral agreements ensured that Sammarinese coinage was recognized by the Italian state, allowing for their use in both nations. Thus, while lacking a central bank or its own paper currency, San Marino maintained a stable and functional monetary system, albeit one entirely subject to the economic fortunes and policies of the Italian Republic.